New to real estate investing

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New to real estate investing

Tyrone Hood
Phoenix, AZ · Member since 2018 · 40 posts · 12 votes

Hello All,

My name is Tyrone and I am new to the whole concept of real estate and investing. I am currently listening to BiggerPockets podcast. I’m trying to gain as much knowledge as possible on how to buy, sale and structure deals. I was wondering if there is anything more I can do to gain more knowledge? I currently have $10k to invest I know that’s not a substantial amount of money, but I would like to know where I can also start with that amount of money or do I need more to invest? I would like to look into maybe rentals, or wholesaling real estate if possible. Any advice would be greatly appreciated! And I currently live in the Phoenix Az area the development here is still growing.

Thank you!

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JM Payne
Rental Property Investor · Member since 2018 · 207 posts · 225 votes
7y

Diversify!  Check out the great BP library of books as well as the wealth of information out there from other authors as well, and don't just focus on RE! Look into business planning, management development, coaching basics, finance, etc etc...it takes more than just podcasts to run a successful business. 

Also, forget wholesaling for now! Stick that $10k in your back pocket and start analyzing every deal you can in order to learn how the numbers work, and use the Events page on here, your local REIA, meetup, and facebook groups to find other local investors to network with and learn from.

https://www.biggerpockets.com/...

I hope that helps!  Good luck, go kill it!  You're going to do great things.

- JM

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  • JM Payne
    Rental Property Investor · Member since 2018 · 207 posts · 225 votes
    7y

    Diversify!  Check out the great BP library of books as well as the wealth of information out there from other authors as well, and don't just focus on RE! Look into business planning, management development, coaching basics, finance, etc etc...it takes more than just podcasts to run a successful business. 

    Also, forget wholesaling for now! Stick that $10k in your back pocket and start analyzing every deal you can in order to learn how the numbers work, and use the Events page on here, your local REIA, meetup, and facebook groups to find other local investors to network with and learn from.

    https://www.biggerpockets.com/...

    I hope that helps!  Good luck, go kill it!  You're going to do great things.

    - JM

    3Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @JM Payne

    Thank you very much JM, it really does I will get to work on that ASAP!

    1Reply
  • JM Payne
    Rental Property Investor · Member since 2018 · 207 posts · 225 votes
    7y

    OMG I don't know if you clicked on that link I posted but that's the local events page for Phoenix and I'm so jelly right now.  I wish I had that much going on to learn from.  Go learn, then go hustle!  You got this.

    - JM

    0Reply
  • Jason Merchey
    Investor · Hendersonville, NC · Member since 2013 · 757 posts · 282 votes
    7y

    Ya, I think if you used that 10k to invest, directly, you could maybe see $1,000 a year if you do well. Somewhere between negative $10k if you lose it all and maybe $2k if you absolutely kill it. I would probably say that unless you wanted to throw that at the wall and see if it sticks on, say, PeerStreet or some other "crowdfunding platform", you might should just use that money for buying books, maybe going to conferences. This website runs pretty deep and it's free! You could spend five hours a day in here for six months and still have $10k when you're done! Personally I am of the opinion that you either need to have capital, which right now you really don't have much of, or knowledge, which you can get with significant effort over a fair amount of time, or you can be one of the shining stars who can use your elbow grease and your hustle to pull down some kind of deal like a "wholesale" property. This is a fairly complicated field and you can get your a$s handed to you if you're not careful. So education is primary, having a mentor if you can find or afford one isn't a bad second step. As JM said, a "real estate meetup group" within driving distance is a good and virtually free way to get your feet wet. Maybe there you will meet someone who you can be of help to or vice-a-versa. Making money is neither quick nor easy my friend, so start but don't get crazy. As Aesop's fable about the tortoise and the hare taught millennia ago, "Slow and steady wins the race." 

    2Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Jason Merchey

    Thank you Jason I have looked into the events page JM recommended and I will start there. I really appreciate you guys time and feed back.

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @JM Payne

    I have JM and I will start there.

    Thanks again!

    0Reply
  • JM Payne
    Rental Property Investor · Member since 2018 · 207 posts · 225 votes
    7y

    @Tyrone Hood no problem at all. 

    @Jason Merchey is spot on.  Tuck that $10k away and focus on making it bigger while you grow your knowledge.  Slow and Steady and you got this!

    - JM

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @JM Payne

    Okay, thanks for the advice and the words of encouragement JM!!

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @JM Payne

    One more question would you consider investing into Fundrise with the minimum investment?

    0Reply
  • Gina Cardarella
    Rental Property Investor · Los Angeles, CA · Member since 2019 · 112 posts · 38 votes
    7y

    @Tyrone Hood

    Welcome Tyro I'm fairly new myself here I also look at Graham Stephens on YouTube I watch a lot of Brandon Turner on YouTube as well and yes books read practice doing the numbers and talk to different lenders and find out what's available for you if any I'm also starting to study on owners financing I don't know too much about it but that might work for you but they do charge more from what I'm understanding

    1Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Gina Cardarella

    Hello Gina thank you for your time and post. I just received Brandon’s beginners book on real estate investing. And the 4part video series to see how that is. And I will look into the options you mentioned as well

    Thanks!

    0Reply
  • Jason Merchey
    Investor · Hendersonville, NC · Member since 2013 · 757 posts · 282 votes
    7y
    Originally posted by @Tyrone Hood:

    @JM Payne

    One more question would you consider investing into Fundrise with the minimum investment?

    I get it, it's hard to have that money sit in your pocket. On the one hand, you DO want to take action and get your feet wet and get off the sidelines. One can develop "analysis paralysis" which is when folks just read and then re-read and then go to a conference and then re-read. They are in a never-ending feedback loop and are nervous to fly without a co-pilot. That's not great. So you could invest that in Fundrise and would probalby stand a 90% chance of not losing money, or not losing much. So it wouldn't be terrible. But I think knowledge and wisdom in this field are critical, so I would say 75% chance you put it into a 1-year bank CD at 1.5% return and start your studying. 25% of me says ya invest that there and then you can spend from $0 to $1,000 studying and going to 50 meetup group meetings and 1-2 conferences, THEN invest that. 

    I sort of think you need an angle, though. I personally think it takes money for 8/10 people to make a go of it in this business. Some people would disagree. If you don't have an angle, you might make 10% in a year, if you do well. If you do have an angle, you might, say, become someone's mentee, or learn you have a gift for this or that, and then you could multiply and morph that $10k into $1,000,000 in a few years. Stranger things have happened. 

    It can be a bit boring and dispiriting to just put $10k on a horse to win and you walk away with $1,058. You want to study the ponies, then you might want to create a business around horseracing - I don't know, t-shirts with a picture of a famous stud playing poker or some #hit - rather than betting on one horse to win. The odds are only 30-40% of him winning, and if you do that twice in a row you're probably dead in the water. You need an angle and you need education.

    "Investing should be a lot like watching grass grow or watching paint dry. If you want excitement, take $100 and go to Las Vegas." Paul Samuelson

    HERE is a blog I wrote about the values I bring to my work as a real estate investor, fyi.

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Jason Merchey

    Hey Jason you are correct I want to get my feet wet but I want to succeed also. And education is key so I want to start off on the right foot. I will continue to learn what I can and go to seminars and meetups . And maybe I can find a mentor who will help me learn the tricks of the trade.

    Thanks again!

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    Tyrone, I highly recommend you start by reading books. You'll likely pick up the general concepts more quickly then you can refine your knowledge by asking specific questions in the forum or researching them online.

    Sterling White is a great guy to listen to. Raised in poverty, bought his first deal when he had no money, continued to work hard and now has hundreds of units. He is on BP, has a facebook page, Youtube, etc.

    The DIY Landlord Book4.7244 Reviews
    WebsiteView Page
    2Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    7y
    Originally posted by @Tyrone Hood:

    Hello All,

    My name is Tyrone and I am new to the whole concept of real estate and investing. I am currently listening to BiggerPockets podcast. I’m trying to gain as much knowledge as possible on how to buy, sale and structure deals. I was wondering if there is anything more I can do to gain more knowledge? I currently have $10k to invest I know that’s not a substantial amount of money, but I would like to know where I can also start with that amount of money or do I need more to invest? I would like to look into maybe rentals, or wholesaling real estate if possible. Any advice would be greatly appreciated! And I currently live in the Phoenix Az area the development here is still growing.

    Thank you!

     Welcome aboard Tyrone.

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Nathan G.

    Hello Nathan I will look into him as well I am getting some great advice from you guys really appreciate the time and info!

    1Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @James Wise

    Thank you James I am excited to be here!

    0Reply
  • Nick Murray
    Specialist · Gulf Breeze, FL · Member since 2019 · 31 posts · 6 votes
    7y

    @Tyrone Hood

    Welcome aboard! I’m brand new as well, so not much advice to give yet! Just read, learn and ask a ton of questions!

    0Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    7y

    @Tyrone Hood Hey Tyrone, first is challenge your mind and how you have been thinking up until you discovered Real Estate Investing. Do not skip this step!

    You may say, well, Ola, how do I do that? 

    Read these books:

    • Rich Dad Poor Dad
    • Richest Man in Babylon
    • Think And Grow Rich

    Many people fail because they don't start with the fundamentals, challenging their view of the world (philosophy), so they give up and say this REI thing is "not working".

    The 10k Seed Capital is great; however, many here on BP started in debt of 50k or more and are now crushing it. 

    2Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Ola Dantis

    Hello Ola, thank you for your time and insight I am familiar with the books you stated. I will continue to develop my mind and my financial position so that soon I will be able to take advantage of opportunities that comes my way once I fully understand the way that real estate investing really works!

    Thanks again!

    1Reply
  • Ed Stelle
    Realtor · Fulton, MD · Member since 2019 · 17 posts · 10 votes
    7y

    @Tyrone Hood

    Welcome Tyrone, new two it as well currently reading the Brrr book by David green. Look forward to following you journey, dont forget to look for local meetups to network with other investors

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Ed Stelle

    Hello Ed,

    I will look into his book as well. I currently got Brandon PDF book about to start on that as well. And I will also look into the meetup groups here in Phoenix as well, I will post my learnings as often as I can and I will follow your journey as well, we both shall do great things Ed.

    Thanks again!

    1Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @Nick Murray

    Hello Nick,

    Sorry it took me so long to respond to your message I currently work at night so I was sleep. But I appreciate your time and post and I will do just that thank you for your feed back! And I hope your journey is a successful one as well.

    Thanks again!

    0Reply
  • John Hickey
    Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes
    7y

    @Tyrone Hood do you own your own house and if so how long have you lived there.

    0Reply
  • Tyrone Hood
    OP
    Phoenix, AZ · Member since 2018 · 40 posts · 12 votes
    7y

    @John Hickey

    Hey John,

    No I do not own a house at this present time.

    0Reply
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